Christoph A. Schaltegger/Patrick Leisibach: Ergänzungsleistungen – eine Reform, die keine ist

Seit 1966 decken Ergänzungsleistungen (EL) zur AHV und IV vorhandene Lücken zwischen Renteneinkommen und Existenzminimum. Statt mit der Giesskanne werden damit effektiv und gezielt Bedürftige unterstützt. Von der Öffentlichkeit und der Politik lange kaum wahrgenommen, entwickelten die EL allerdings eine weit über dem Wirtschaftswachstum liegende Ausgabendynamik.

Thomas Apolte: Youth Bulges, Insurrections, and Politico-Economic Institutions

We develop a model of insurrection markets and integrate the youth bulge as measured by the relative youth cohort size. As youth-specific characteristics we define the young person’s attitude toward revolutionary groups and the government, the degree of risk aversion and the relative productivity of young people on the insurrection market as compared to the official labor market.

Tushyanthan Baskaran/Lars P. Feld/Jan Schnellenbach: Fiscal Federalism, Decentralization and Economic Growth: A Meta-Analysis

The theoretical literature on fiscal federalism has identified several channels through which government decentralization could affect economic growth. Much of the literature focuses on the efficiency aspects of a decentralized provision of public services, but decentralization may also increase growth by raising the ability of the political system to innovate and carry out reforms. In contrast, some authors argue that decentralization increases corruption and government inefficiency, and thus may diminish growth. Given this theoretical ambiguity, several studies have attempted to identify the effect of decentralization on economic growth empirically over the last two decades. We review and conduct a meta-analysis of this empirical literature. Based on our analysis, we point out open questions and discuss possible ways to answer them.

Heiko T. Burret/Lars P. Feld: Vertical Effects of Fiscal Rules – The Swiss Experience

Formal fiscal rules have been introduced in many countries throughout the world. While most studies focus on the intra-jurisdictional effects of fiscal rules, vertical effects on the finances of other levels of government have yet to be explored thoroughly. This paper investigates the influence of Swiss cantonal debt brakes on municipal finances during the years 1980‐2011 by examining aggregated and disaggregated local data. A Difference‐in‐Differences estimation (two‐way fixed effects) provides little evidence that budget constraints at the cantonal level affect average municipal finances and fiscal decentralization.

Arash Molavi Vasséi: Recursive Utility, Increasing Impatience and Capital Deepening

This paper argues that F.A. Hayek anticipated the notion of ‘recursive utility’ and analytically reconstructs his informal exposition of the optimal saving process. The scope of analysis is restricted to Hayek’s largely unrecognised contribution in Utility Analysis and Interest in 1936, restated as chapters 17 and 18 in The Pure Theory of Capital, first published in 1941. It is shown that Hayek characterised efficient dynamic choice as an infinite series of two-period optimality conditions by transforming an infinite-horizon optimisation problem into a perpetual confrontation of current and prospective utility, that he hinted at the axiomatic base of stationary and weakly separable dynamic preferences, and that he endogenised the subjective discount rate to substantiate his claim that the interest-rate path in a perfect-foresight equilibrium is unidirectionally determined by the marginal productivity of investment (and not by thrift). Hayek’s vision of dynamic social efficiency and dynamic equilibrium is completely characterised.

Peter J. Boettke/Christopher J. Coyne: The Oxford Handbook of Austrian Economics

The Austrian School of Economics is an intellectual tradition in economics and political economy dating back to Carl Menger in the late-19th century. Menger stressed the subjective nature of value in the individual decision calculus. This school of economic thinking spread outside of Austria to the rest of Europe and the United States in the early-20th century and continued to develop and gain followers, establishing itself as a major stream of heterodox economics.
The Oxford Handbook of Austrian Economics provides an overview of this school and its theories.